Look at that candle! Yesterday, EUR/USD staged a magnificent rally, causing key resistance at the 1.3200 major psychological level to break convincingly. With the next major resistance level more than 400 pips away, it looks like the pair is poised to go higher. Be careful jumping in hastily though! Stochastic shows that conditions are overbought, which means the rally could be exhausted and we could see a retest of 1.3200 before the pair heads for 1.3700.
Awww, snap! Is a comeback in the works? Looking at the hourly timeframe of AUD/USD, we see that a previous support level is holding. To make it even better, this support around .9550 coincides nicely with the 50% Fibonacci retracement level. Will it hold? Maybe. Just don’t get too excited, okay? A strong drop back to .9500 could signal that the Aussie selloff ain’t over.
Smooth sailing for the Kiwi, baby! This pair has been stuck in a descending channel for sometime now, and it doesn’t seem like it’s gonna change anytime soon! Now that price has bounced off resistance at the top of the channel at .8100, we may just see the pair continue to drop until it finds support at the bottom at around .7850.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.